Marketing - Bionade Case

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MARKET SITUATION AND SEGMENTATION In the 1980s, the mature German beer market experienced declining sales due to the emergence of trendy, lifestyle-softdrinks and alcoholic mixed drinks. Especially the small breweries were suffering from this development, such as the Bavarian Peter Brauerei. Thus the company had to come up with a new idea in order to keep the business running. In 1985, the master brewer Dieter Leipold (see attachment A2) started research on an organically brewed non-alcoholic drink, which he accomplished ten years later. With this innovative product, the company extended its product range and entered the beverage market, without having to invest in new production facilities. On the beverage market it had to compete with…show more content…
Nevertheless for most potential customers the risks outweighed the chances of success, so the company had to go nationally and concentrated on the main cities with a higher open-mindedness. Selling moderately in organic food stores and gyms the sales went up when the beverage wholesaler GÖTSCHE started to stock BIONADE in Hamburg, where soon many hip clubs and pubs were selling BIONADE. The great break-through came by chance when Hungarian-labelled bottles from a bounced deal in Hungary appeared in Hamburg’s scene and the rumour of a new “sports drink, developed for Hungarian athletes” spread across the hip scene. When articles in the “Manager Magazin” and in “brand.eins” were published, other wholesalers, retailers and businesses discovered their interest. For the purpose of expending the distribution system BIONADE first affiliated with Rhön Sprudel, but in 2004 after rejecting a take-over bid from Coca-Cola, the company joined the Coca-Cola distribution system. BIONADE was from now on available in almost every place Coca-Cola was sold, never paying one cent of listing fees. Besides BIONADE is sold through the corporate online shop and other main companies’ restaurants, for example in the restaurants of the Deutsche Bahn, IKEA, McCafé, NORDSEE and in school and other public canteens. This year BIONADE will probably increase sales to 200

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